U.S. Sens. Todd Young (R-IN) and Mitt Romney (R-UT) on March 2 signed on as original cosponsors of a bipartisan resolution that would establish a new income tax agreement between the United States and Taiwan.
The U.S. already has multiple tax agreements in place with Taiwan, including a transportation income tax agreement and an agreement to facilitate implementation of the Foreign Account Tax Compliance Act.
“Our relationship with Taiwan has never been stronger, yet our tax policy fails to reflect the strength and importance of this relationship. Currently, U.S. and Taiwanese businesses are double-taxed, creating an unnecessary burden for those who seek to deepen economic ties between our two countries,” Sen. Young said. “To fix this, my colleagues and I are encouraging the president to align our policies with our interests by eliminating this harmful double tax.”
Senate Resolution (S.Res.) 91, which is sponsored by U.S. Sen. Chris Van Hollen (D-MD), also would recognize the importance of Taiwan’s security and prosperity to the United States’ own security and prosperity and that eliminating double-taxation of U.S. and Taiwanese firms could boost bilateral trade and investment, potentially creating new job growth in the U.S., according to a summary provided by the lawmakers.
Additionally, S.Res. 91 would encourage the U.S. president to seek other ways to increase trade, technology, and investment ties between the U.S. and Taiwan, the summary says.
“Taiwan has long been a trusted partner of the United States,” said Sen. Romney. “Our tax policies should reflect our commitment to our relationship with Taiwan. I’m proud to join my colleagues in introducing this legislation, which will continue to strengthen the ties between our two countries.”
The resolution has been referred for consideration to the U.S. Senate Foreign Relations Committee.
U.S. Sen. Bill Cassidy (R-LA) also came out in support of the resolution last week, noting that it “encourages the Biden administration to negotiate a tax agreement to make it easier to do business and avoid double taxation.”